Economy

Kiva Zip Miami

Kiva Zip is a crowd-lending platform that enables financially excluded small entrepreneurs to access loan capital. These entrepreneurs are able to crowd-fund a loan of 5 to 10K with 0% interest on our platform. Through our platform more than 35,000 lenders from around the world have lent to entrepreneurs in the United States. In addition to the financial capital, our borrowers also connect with thousands of lenders who become customers and brand ambassadors. Kiva Zip has provided loan capital to over 5,000 borrowers from traditionally financially excluded groups such as women, veterans and ethnic minorities. We aim to bring this unique 0% interest capital to Miami where small entrepreneurs are in dire need of financial capital as capital access is the biggest barrier to starting or growing a business in the US today. We know that building awareness of Kiva Zip in Miami will allow for amazing entrepreneurs to share their story and receive a crow-funded loan. For more, we encourage you to visit www.kivazip.org

Who are you?

Kiva is an online lending platform that has provided over 600 million dollars in loans to small and micro entrepreneurs globally through crowd-funding. Kiva is the winner of the Economist "No Boundaries" Innovation award.

How does this project impact the issue you selected?

In the US, capital access is one of the principal obstacles to small business growth. Yet, daily banks reject an average of 8,000 small business loan applications. This project brings financial capital to small entrepreneurs who can't typically secure a loan. Kiva does not use traditional methods of credit evaluation to assess credit worthiness. Rather our borrowers use their social capital to qualify for our program. This allows us to reach the most financially excluded populations.

What data points from The Our Miami Report does your project address?

First, one of the goals identified in the report relates to job opportunities. Based on our survey, we have found that 50% of Zip borrowers were able to use the funding to employ an additional employee. Second,
the report indicates an above average # of startups in Miami. Typically startups struggle to secure the business loans necessary to scale or succeed. For this very reason our loans are available to startups in order to provide the financial access they would not otherwise secure.

Please give examples of your project's success.

Kiva Zip was a pilot project started in 2011 focused on addressing the needs of small US entrepreneurs who were struggling to secure loans. Since it's inception, the program scaled dramatically providing nearly 4.9 million in capital to over 5,000 borrowers. These loans have been crowd-funded by 35,000 lenders from 180 countries. Furthermore, we impacted the most financially excluded populations with the majority of funding supporting women and minorities from low-medium income backgrounds.

Organization Name (or individuals name) Kiva Microfunds

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